Regulatory Bylaw No. (1) Trading by Non-Iraqis in Iraqi Financial Markets

Securities Commission Regulatory Bylaws 2022 Regulatory Bylaw No. (1) Trading by Non-Iraqis in Iraqi Financial Markets Article (1) The broker shall verify the personal information of the non-Iraqi investor by requesting the documents listed below via email, provided that they are subsequently supported by documents certified by the Embassy of Iraq in the investor's country or any accredited government entity in their country, within a period not exceeding fifteen days. a. A valid and certified passport. b. The contract and license of incorporation certified by the issuing authority or the concerned Iraqi authority if the investor is a legal entity. c. Permanent and temporary address, if any, email, and phone number. d. Three samples of signatures, authenticated by the correspondent bank. Article (2) The market shall prepare a sale and purchase authorization form in Arabic, English, and Kurdish, including the order number, time, date of receipt of the order, investor's name, number of shares, specified price, market price, order type, and order validity. The authorization shall be delivered via email to the investor's agent or by any other means, provided that the broker bears responsibility for the sale and purchase according to the agreement concluded between them. Article (3) The non-Iraqi investor - or their legal representative - shall immediately: a. Sign an agreement contract with the financial brokerage company. b. Sign the authorization form with the financial brokerage company. Article (4) A non-Iraqi investor, whether resident or non-resident in Iraq, may appoint an agent to follow up on their financial investments in the market, according to an official contract and in accordance with the law. Article (5) The broker may not receive any cash amounts from the non-Iraqi investor or their agent, and sale amounts may not be paid in cash. Rather, these operations must be conducted through one of the licensed banks in Iraq and in Iraqi Dinars. An exception is made for accepting cash deposits for share purchases, provided their value does not exceed (250,000) Dinars.

Securities Commission Regulatory Bylaws 2022 Article (6) Financial settlement of investors' rights shall be carried out according to the period stipulated in the trading regulations and through a licensed Iraqi bank. The broker shall bear the legal consequences. Article (7) The broker must provide the non-Iraqi investor or their agent with sale and purchase statements in accordance with the effective regulatory bylaws or the agreement concluded between them, and by the agreed-upon available means. Article (8) The broker shall keep a copy of all documents mentioned in the regulatory bylaws and copies of receipts for deposited and received amounts, which shall be subject to the supervision of the Market and the Commission. Article (9) The laws, regulatory bylaws, and controls related to non-Iraqi investor trading shall be published on the Market's website. Article (10) When a non-Iraqi investor wishes to sell or purchase shares, the authorization must be valid and in accordance with the effective regulatory bylaws. Article (11) The rules, procedures, and obligations applicable to Iraqi investors and brokers shall be effective for non-Iraqi investors, unless they contradict what is stated above. Article (5) was amended by our letter No. 2505/5 on 2024/11/12.